ACCT207 Chapter 11 practice questions

Qit ik the cash outflow is classified as an operating

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qit''-{ ik-{,{the cash outflow is classified as an operating 6 a. b. c. d. ,'-\ {e.}
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28. Which a. b. ( c.) d. e. of the following represents the shares currently in the hands of investors? Authorized shares Issued shares Outstanding shares Unissued shares Treasury shares 1'*r'*"ir.!'1lrl1 29. If Ly stock a- b. -9. I u.] e. a. b. c) o e. @ b. nch Corporation sells and issues 100 shares of itsrffipar value common at $11 per share, the entry to record the sale will qE#nclude a Debit to cash of $1,100 u;------" Credit to contributed capital in excess of par of $ 100 dr , f-tkai ci t:' #'i:+ Credit to common stock of $ 1,000 Credit to retained earnings of $ 100 All of the above would be included ,,! {1i"ii} ' ',::^ , i 'i L) i:ii,il f,,r '; : ")t' +f-,;i-{; r S",'f : in - r- i 6" # #l1: #*'# i t!' ('{ 30. The balance sheet of Warner Company showed the following data about its common stock, par $1: authorized shares, 5,000,000; outstanding shares, 2,300,000; and issued shares 2,500,000. Therefore, the number of treasury stock shares was 0 2,700,000 2,500,000 200,000 None of the above is correct The most common reason a company would declare a stock split is to reduce the market price of its stock to increase the trading activity. b. fa lse results in a transfer of retained earnings to contributed capital €iffifHecs the number of shares outstanding and involves a pro rata reduction in the par value per share c. is accounted for in exactly the same manner as a stock split d. Both a. and b. are correct er,' None ofthe above are correct 31.
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